Monday, September 26, 2011

"Clean Energy, China-Style: Sex, Cash and Stolen Technology" (AMSC)

For those who say we should emulate the Chinese approach to clean energy I say Damn Straight!
Sinovel was the largest customer of American Superconductor, accounting for up to 90% of AMSC's sales in some quarters. They reneged on a whole bunch of orders, putting American Superconductor at risk of insolvency.It may have been a deliberate attempt to cripple AMSC and steal their technology, above and beyond this software case.
From Forbes:

Sinovel, a leading Chinese wind turbine maker, seduced a troubled software engineer into selling highly-sensitive software code from his employer, Windtec, for subsidized sex and a heap of no-strings-attached cash.

Dejan Karabrasevic, a 38-year-old Serb, was sentenced to one year in
jail and two years of probation after admitting before a judge in
Klagenfurt, Austria that he had pilfered the data.Sinovel’s 1.5
megawatt turbines are allegedly using the wind-power electronics
software code developed by Windtec, the Austrian subsidiary of Devons,
Mass.-based American Superconductor.
Here is how Recharge describes the testimony provided in Austria yesterday:

The
court heard claims that Karabrasevic, who was embittered after being
demoted from his job as systems integrator to a post in the customer
services department, handed over code for €15,000.

Sinovel
at one stage offered Karabrasevic a $1.7 million employment contract
including car and apartment, it was said, while women also “attempted to
convince him to cooperate.”

But
pleading guilty to the charge, Karabrasevic described the decision to
hand over Windtec’s IP as “the biggest mistake of his life.”

AMSC is pursuing $250 million or more in legal damages from Sinovel
resulting from the alleged illegal use of AMSC’s proprietary software
code. Karabrasevic’s admission of guilt is likely to advance AMSC’s
efforts to recover those alleged damages from Sinovel.